FedEx Co. (NYSE:FDX) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research note issued on Monday.
According to Zacks, “Shares of FedEx have underperformed its industry over the last six months, due to headwinds like surging costs. In fact, we expect high costs to hurt the company's bottom line in the second quarter of fiscal 2018 as was the case in the preceding quarter. Costs related to the integration process of TNT Express and the increased investments at its Ground unit are also likely to hurt the bottom-line. Detailed results should be out on Dec 19. The Zacks Consensus Estimate for fiscal second-quarter earnings has been revised 0.7% downward over the last 30 days, as well. This reflects the negative sentiment surrounding the stock. Nonetheless, FedEx has left no stone unturned to meet the surge in demand during the current holiday season. Despite its efforts, the company’s performance might be hurt by high delivery costs. We are, however, impressed by its decision to reward shareholders. Growing demand for e-commerce is also a positive.”
Other research analysts also recently issued reports about the company. Loop Capital reiterated a “buy” rating and set a $260.00 target price (up from $250.00) on shares of FedEx in a research report on Wednesday, September 20th. Citigroup Inc. reiterated a “buy” rating and set a $235.00 target price on shares of FedEx in a research report on Thursday, September 14th. Robert W. Baird reiterated a “buy” rating and set a $235.00 target price on shares of FedEx in a research report on Tuesday, September 12th. Cowen Inc restated a “buy” rating and set a $240.00 price target on shares of FedEx in a report on Tuesday, September 12th. Finally, BMO Capital Markets restated a “buy” rating and set a $245.00 price target on shares of FedEx in a report on Wednesday, September 6th. Two analysts have rated the stock with a sell rating, five have issued a hold rating and twenty-three have issued a buy rating to the company. The stock has a consensus rating of “Buy” and a consensus price target of $230.21.
FedEx (NYSE FDX) opened at $217.00 on Monday. The company has a current ratio of 1.63, a quick ratio of 1.57 and a debt-to-equity ratio of 0.91. The company has a market capitalization of $58,188.12, a P/E ratio of 18.22, a PEG ratio of 1.36 and a beta of 1.37. FedEx has a 52-week low of $182.89 and a 52-week high of $231.35.
FedEx (NYSE:FDX) last posted its earnings results on Tuesday, September 19th. The shipping service provider reported $2.51 EPS for the quarter, missing analysts’ consensus estimates of $3.17 by ($0.66). The firm had revenue of $15.30 billion for the quarter, compared to the consensus estimate of $15.35 billion. FedEx had a net margin of 4.72% and a return on equity of 20.69%. The firm’s revenue was up 4.1% compared to the same quarter last year. During the same quarter in the prior year, the company posted $2.90 earnings per share. sell-side analysts predict that FedEx will post 12.47 earnings per share for the current fiscal year.
In other FedEx news, insider Henry J. Maier sold 11,150 shares of the stock in a transaction on Thursday, October 26th. The stock was sold at an average price of $228.46, for a total value of $2,547,329.00. Following the sale, the insider now owns 36,747 shares in the company, valued at $8,395,219.62. The transaction was disclosed in a legal filing with the SEC, which is accessible through the SEC website. Also, Director Kim Jabal sold 3,980 shares of the stock in a transaction on Wednesday, November 1st. The stock was sold at an average price of $225.55, for a total value of $897,689.00. Following the completion of the sale, the director now owns 6,080 shares in the company, valued at approximately $1,371,344. The disclosure for this sale can be found here. In the last quarter, insiders sold 40,094 shares of company stock worth $9,024,637. Insiders own 8.45% of the company’s stock.
Hedge funds have recently added to or reduced their stakes in the business. Salem Investment Counselors Inc. increased its stake in shares of FedEx by 2.8% during the second quarter. Salem Investment Counselors Inc. now owns 479 shares of the shipping service provider’s stock valued at $104,000 after buying an additional 13 shares during the period. Krilogy Financial LLC increased its stake in shares of FedEx by 0.4% during the second quarter. Krilogy Financial LLC now owns 511 shares of the shipping service provider’s stock valued at $111,000 after buying an additional 2 shares during the period. FNY Managed Accounts LLC purchased a new position in shares of FedEx during the first quarter valued at $100,000. Alexandria Capital LLC increased its stake in shares of FedEx by 2.5% during the second quarter. Alexandria Capital LLC now owns 540 shares of the shipping service provider’s stock valued at $117,000 after buying an additional 13 shares during the period. Finally, Financial Engines Advisors L.L.C. purchased a new position in shares of FedEx during the third quarter valued at $132,000. Institutional investors and hedge funds own 76.07% of the company’s stock.
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FedEx Company Profile
FedEx Corporation (FedEx) provides a portfolio of transportation, e-commerce and business services through companies competing collectively, operating independently and managed collaboratively, under the FedEx brand. The Company’s segments include FedEx Express, TNT Express, FedEx Ground, FedEx Freight and FedEx Services.
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